How do I Buy Bonds?

Most bond transactions can be completed through a full service or online brokerage like Desjardins Online Brokerage. Generally, the minimum order size is $5,000 face value for bonds and $10,000 for money market (short-term debt) instruments. If you cannot afford this amount, you may want to consider looking at a mutual fund or exchange traded fund (ETF) that specializes in bonds.

Some financial institutions will provide their clients with the service of transacting government securities. If, however, your financial institution doesn't provide this service and you do not have a brokerage account, you can purchase government bonds through a government agency (this is true in most countries).

If you decide to purchase a bond through your broker, they will markup the price slightly. This markup is the same as a commission however it will be included in the price and yield you are quoted. This is standard for the industry and allows you to make an informed decision based on your final cost.

Just remember to research your bond just as you would a stock. We've gone over several of the factors that need to be considered before loaning money to a government or company, so do your homework!